Law And Legislation

From Ponzi schemes to boiler rooms, cryptocurrency criminals are always looking for new victims. Fortunately, law enforcement has been up to the challenge – a promising sign for the future health of the digital asset ecosystem.

On August 3, 2017, Coin Center and the Digital Currency & Ledger Defense Coalition filed proposed amicus curiae briefs in the US Federal Court in San Francisco. The two entities oppose the enforcement of the IRS summons issued to Coinbase.

The Competitive Enterprise Institute submitted a request to the Judge overseeing the Coinbase case for permission to file an amicus curiae brief. The CEI opposes the government’s petition to enforce the Internal Revenue Service’s summons.

ETHNews spoke with CEO and billionaire Chance Barnett to find out his perspective on how financing has evolved in light of developments with blockchain-based funding methods and what he’s doing in the space.

In a groundbreaking report, the US Securities and Exchange Commission has concluded that tokens from The DAO are securities. This indicates that US securities laws may apply more broadly to token offerings and other virtual assets.

The US Commodity Futures Trading Commission has granted LedgerX registration as a derivatives clearing organization. The agency already recognizes LedgerX as a swap execution facility. Options trading for cryptocurrency should begin in early fall of 2017.

On July 20, former CEO of GAW Miners Homero Joshua Garza pleaded guilty to one count of wire fraud stemming from his mining Ponzi scheme. Garza, who faces up to 20 years imprisonment, will be sentenced in October 2017.

Governor of the Austrian Central Bank Ewald Nowotny warned users about the speculative nature of virtual currency. Nowotny also serves as a member of the governing council of the European Central Bank (ECB).

During a public hearing held in South Korea’s National Assembly, a diverse group of panelists called upon regulators to bolster the nation’s legal framework for cryptocurrency. Participants raised concerns about the absence of consumer protection laws and potential tax treatments of virtual currency.